Question

Under which major head will you show the following items in the Statement of Profit and Loss of a company ?

(1) Rent received, (2) Revenue from project consultancy, (3) Revenue from operations : Return, (4) Trade expenses, (5) Leave encashment expenses, (6) Refund of income tax, (7) Transfer fees, (8) Loss on sale of investment, (9) Sale of scrap, (10) Stores and spares parts used, (11) Salary and wages, (12) Manufacturing expenses, (13) Telephone and internet expenses, (14) Shares issued expenses written off, (15) Lease rent.

Answer 1

Item	Main Heading	Sub-Heading
1. Rent Received	Other income
2. Revenue from Project Consultancy	Other Income
3. Revenue from Operations: Return	Revenue from Operations
4. Trade Expenses	Other Income
5. Leave Encasement Expenses	Expenses	Employee Benefit Exp.
6. Tax Refund	Other Income
7. Transfer Fees	Other Income
8. Loss on Sale of Investment	Other Income